The Dow Chemical Co. has announced an initial agreement for
long-term ethylene offtake for a new joint venture (JV) to be
formed between Japanese firms Idemitsu Kosan Co. Ltd. and
Mitsui & Co. Ltd.
Idemitsu and Mitsui will form the JV to construct and
operate a world-scale, linear alpha olefins (LAO) unit on the
US Gulf Coast.
This agreement is part of Dows strategy to integrate
cost-advantaged feedstocks to support the profitable
growth of the companys performance plastics
The JV will utilize an integrated supply of ethylene from
Dows production grid on the US Gulf Coast to produce LAO
used as comonomers throughout Dows high-value performance
plastics franchise, and it will contribute significant capital
for these rights.
Dow expects the agreement with the JV will enable a
long-term supply and purchase relationship for LAO, which will
enhance Dows high-value performance plastics franchise.
This will better enable the franchise to serve several of Dow's
fastest-growing market segments.
Location options for the LAO unit are currently being
explored, with final investment locations to be determined at a
The JV is in the front-end
design (FEED) phase and will complete this work in 2014.
Construction and startup of the new
unit is targeted for 2016.